RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/UKR/127 
7 June 2005 
 (05-2323) 
Working Party on the 
Accession of Ukraine Original:   English 
 
 
 
ACCESSION OF UKRAINE 
 
Additional Questions and Replies  
 
 
 The following submission, dated 1 June 2005, is being circulated at the request of the Delegation of Ukraine.   
_______________ 
  WT/ACC/UKR/127 
 Page i 
 
 
 TABLE OF CONTENTS 
 
 
II. ECONOMIC POLICIES..........................................................................................................1  
- Monetary and Fiscal Policy..................................................................................................... .1 
- Foreign Exchange and Payments ............................................................................................1  
- Investment Regime.............................................................................................................. ......1  
- State Ownership and Privatization .........................................................................................2  
- Pricing Policies ............................................................................................................... ...........3  
- Competition Policy............................................................................................................. .......3  
IV. POLICIES AFFECTING TRADE IN GOODS .....................................................................4  
- Trading Rights ................................................................................................................. .........4  
A. IMPORT REGULATIONS......................................................................................................5  
- Ordinary cust oms duties ........................................................................................................ ..5 
- Other duties and charges....................................................................................................... ...6 
- Fees and charges for services rendered...................................................................................6  
- Application of internal  taxes to imports .................................................................................6  
- Quantitative import restrictions, includi ng prohibitions, quotas and licensing 
systems ........................................................................................................................ ...............8  
- Customs valuation.............................................................................................................. .......8  
- Rules of origin ................................................................................................................ ...........9  
B. EXPORT REGULATIONS ...................................................................................................10  
- Customs tariffs, fees and charges for serv ices rendered, application of internal 
taxes to exports............................................................................................................... .........10  
- Export rest rictions ............................................................................................................ ......10  
C. INTERNAL POLICIES A FFECTING FOREIGN TRADE IN GOODS .........................11  
- Industrial policy, including subsidies....................................................................................11  
- Technical barriers to trade, standards and certification.....................................................12  
- Sanitary and phytosanitary measures...................................................................................13  
- Trade-related investment measures ......................................................................................16  
- State-trading entities......................................................................................................... ......16  
- Free zones, special economic areas........................................................................................16  
- Transit........................................................................................................................ ..............17  
- Agricultural policies.......................................................................................................... ......18  
(c) Internal policies.............................................................................................................. .........18  
- Textiles regime ................................................................................................................ ........18  
V. TRADE-RELATED INTELLECTUAL  PROPERTY REGIME.......................................18  WT/ACC/UKR/127 
Page ii  
 
 -
 ENFORCEMENT...................................................................................................................1 8 
VI. POLICIES AFFECTING TRADE IN SERVICES..............................................................19   WT/ACC/UKR/127 
 Page 1 
 
 
 II. ECONOMIC POLICIES 
- Monetary and Fiscal Policy Question 1 Paragraph 11:  Is the reduction of VAT to 17 per cent in 2005 and to 15 per cent in 2006 still 
planned? 
Answer:
 
No reductions in the VAT rates are currently being planned. 
- Foreign Exchange and Payments 
Question 2 Paragraphs 14-19:  Are exchange rate losses paid abroad tax-deductible in all cases, e.g. if they 
relate to accounts payable? 
Answer:
 
Exchange rate losses are not tax-deductible. 
Question 3 
Paragraph 17: Importers are required to obtain an individual licence from the National Bank 
for import prepayments for goods (works, services ) of delivery terms exceeding 90 days.  Are 
there any plans for abolishing this restriction?  If  yes, when will it be eliminated?  If not, are 
there any prospects of prolonging the 90 days period. When could that take place? 
Answer:  
Article 6 of the Law of Ukraine "On Procedure for Carrying Out Settlements in Foreign Currency" 
establishes the list of types of agreements, implem entation of which may fairly require the term 
exceeding 90 calendar days, and provides for the possibility to mitigate or abolish the above 
restriction by means of obtaining an individual licence of the National Bank of Ukraine for prolongation of the time-period of settle ments, established by legislation.  
- Investment Regime 
Question 4 
Paragraph 21:  We understand that an investme nt program for automobiles construction was 
also approved for a further company, LuAZ, under the 1997 Law at the end of 2004.  Please clarify. 
Answer:
 
The Investment Program for LuAZ was approved in  September 2003 prior to the adoption of the Law 
"On Development of Ukraine's Automobile Indus try" No. 1624-VI of 18 March 2004.  Thus, such 
program falls under the 1997 Law. WT/ACC/UKR/127 
Page 2  
 
 Question 5 
Paragraph 23:  Please add "The Working Party took note of this commitment" at the end of the 
paragraph.   
Answer:
 
Ukraine does not object to this addition. Question 6 Paragraph 26:  According to the information pr ovided, a wide range of activities could be 
prohibited.  We welcome Ukraine's readiness to provide information on a case-by-case basis. 
However, for the sake of clarity, it would be d esirable to draw up a list describing all prohibited 
(WTO inconsistent) investment activities. 
Answer:
 
According to the Article 4 of the Law "O n Investment Activities" No. 1560-XII of 
18 September 1991, it is prohibited to invest in the ob jects, creation and use of the latter is contrary to 
environmental, sanitary and hygienic, radiation, architectural and other rules, established by 
legislation of Ukraine or violating the interests and rights of citizens, enterprises or the State, which 
are protected by the law.  There is no specific list of the objects. 
Question 7 
Further, the acquisition of land from foreigners an d foreign organisations is restricted and only 
possible via certain intermediaries.  Could Ukraine confirm this? 
Answer:  
According to the Land Code No. 2768-III of 25 Octobe r 2001, foreign citizens as well as foreign legal 
entities are allowed to hold proprietary rights for non-agricultural land under condition they own the 
objects of real estate on the land.  Foreign investors can obtain the property right for non-agricultural land on the basis of acquisition or other civil contracts if they buy or intend to build the objects of real estate for conducting economic activity.  
- State Ownership and Privatization 
Question 8 
Paragraph 27:  We understand that the State Property Fund is currently drafting a new 
programme.  When is this expected to be adopted? 
Answer:
 
The draft State Privatization Programme for 2004- 2006 has been submitted to the Parliament for 
consideration. 
Question 9 Paragraph 32:  If available, please add the requested information on the importance of state-
owned enterprises in Ukraine's foreign trade.  WT/ACC/UKR/127 
 Page 3 
 
 
 Answer:  
According to the data by the State Statistics Comm ittee of Ukraine, among the enterprises owned by 
the State and being in State corporate ownership, 792 were involved in export activity in 2004.  The 
volume of export was US$ 2,759.6 million (8.4 per cent of the total volume of exports).  Five hundred 
and ninety-four enterprises were involved in importing activity, the volume of imports being 
US$ 9,714.0 (33.5 per cent of the overall imports). 
Question 10 
Paragraph 34:  Is the list of State-owned enterp rises not subject to privatization exhaustive? 
Answer:  
The list of State-owned enterprises not subject to priv atization exhaustive, referenced in paragraph 34, 
is exhaustive. 
Question 11 
From document WT/ACC/UKR/125, Question 13, we  understand that a draft Law is currently 
in Parliament that would exclude 274 objects from the list of assets not subject to privatization. 
What is the current status of this draft Law? 
Answer:  
The Draft Law is under consideration in the Parliament.  
- Pricing Policies 
Question 12 Paragraph 42:  We would like to stress the import ance of ensuring that no new price controls 
are introduced. 
Answer:
  
With respect to price controls, Uk raine will abide by the WTO rules. 
- Competition Policy 
Question 13 Paragraph 48:  Is the list of natural monopolies exhaustive? 
Answer:
 
The list of natural monopolies referen ced in Paragraph 48 is exhaustive. WT/ACC/UKR/127 
Page 4  
 
 IV. POLICIES AFFECTING TRADE IN GOODS 
- Trading Rights  Question 14 Paragraph 62ff:  Are activity licenses the only restrictions of trading rights?  Who may get 
activity licenses? Are there any restrictions fo r foreigners?  Can Ukraine clarify whether the 
fees for licensing are commensu rate to the service rendered? 
Answer:
 
Paragraph 62 does not deal with licensing of certain  types of activities; it deals with registration of 
natural persons and legal entities as subjects of entr epreneurial activity that is not licensed.  Any 
person can be registered as a subject of entr epreneurial activity, including foreigners.  
Question 15 Paragraph 63:  We regret that Ukraine does not envisage a gradual reduction of the number of 
goods and services-related activities subject to licensing.  
Answer:
 
The number of goods and services-related activities s ubject to licensing has been drastically reduced 
in Ukraine during the recent years.  Goods and ser vices currently subject to licensing in Ukraine are 
similar to those subject to the same regulations in other WTO Member countries and are instituted to 
achieve legitimate objectives. 
Question 16 
Paragraph 65: We welcome the further inform ation provided concerning the prohibition to 
import or export cognac spirits for foreign ente rprises. For more clarity, we suggest to add the 
word "spirits" in the following sentence in pa ragraph 65: "Licences (for the production and 
trade in alcohol and tobacco products) were gen erally available to all economic agents, except 
for licences to import and export ethyl alcohol, cognac spirits and fruit spirits, which were issued only to State-owned enterprises or to "s pecialized enterprises" (residents) specifically 
approved by the Cabinet of Ministers." The same change should be made in Table 6(a). 
Answer:
 
Ukraine does not object to add the word "spirits" wh ere indicated in Paragraph 65 and Table 6(b).   
Question 17 
Please explain in more detail why foreign enterpri ses cannot be such "specialized enterprises" 
even if they would fulfil the criteria set ou t in the next sentence ("possessing the necessary 
facilities, equipment and expertise fo r the making of cognac spirits"). 
Answer:  
Based on the fact that the above products can signi ficantly affect human health, it is envisaged in 
Ukraine to conduct state control of production and ci rculation of spirits, which allows taking effective 
actions with the aim to prevent use of falsified and low-quality products in prod uction. Said control is  WT/ACC/UKR/127 
 Page 5 
 
 
 conducted by means of issuing a licence to specialized  enterprises (residents), list of which is adopted 
by the Cabinet of Ministers of Ukraine. 
Question 18 
What are the licensing requirement s for foreign importers for in particular alcohol (other than 
ethyl alcohol, cognac spirits and fruit spir its – see above) and tobacco? Will only activity 
licenses be required for producers/distributors of alcohol and tobacco or also import licences (as 
is the case for ethyl alcohol, cognac spirits and fruit spirits)? 
Answer:  
List of the requirements for documents and info rmation to obtain import licence for alcohol and 
tobacco products is stipulated in paragraph 42 of  document WT/ACC/UKR/118 and in Table 6(d) of 
document WT/ACC/SPEC/UKR/5/Rev.2. 
Ukraine hereby confirms that only a licence to carry  out relevant types of activities is required for 
importers, producers and/or distributors of alcohol products (except for ethyl, cognac and fruit spirits) 
an tobacco products. Other and/or additional licenses, including import licenses, are not required. 
A. IMPORT REGULATIONS 
- Ordinary customs duties 
Question 19 Paragraph 76:  Amendments to the Customs Tari ff of 15 March implied the lowering of tariff 
rates for a wide range of consumer products.  An update of Table 8 might therefore be 
necessary. 
Answer:
 
The current Customs Tariff comprised approximately 11, 000 tariff lines.  Most tariffs were levied at 
ad valorem  rates, but 1,765 tariff line items were subject to specific rates of duty.  Further details on 
the current applied tariffs are presented in Table 8.   
An updated Table 8 is provided below: 
Table 8:  Import duties (privileged rates)  levied on goods and other items imported  
into Ukraine Territory  
Ukrainian applied customs tariff 
Import duty rate 
(%) 0 0-5 5-10 10-15 15-20 20-25 More 
than 25 Specific 
Rate Total 
Number of tariff 
lines 1,836 3,873 1,804 681 374 435 296 1,716 11,015 
Share of number of 
tariff lines (%) 16.67 35.16 16.38 6.18 3. 40 3.95 2.69 15.58 100 
The maximum of the import duty rate is: 
for items of groups 01-24 50 % (with the qu antity more than 25 % rate is 11.23 %) 
for items of groups 25-97 50 % (with the quantity more than 25 % rate is 0.59 %) 
Average arithmetic rate of th e applied customs tariff (%) 10.26 
Average weighted rate of the applied customs tariff (%) 5.29 
 WT/ACC/UKR/127 
Page 6  
 
 - Other duties and charges 
Question 20 Paragraphs 79:  The additional fee of € 0.01 kg, which is discriminatorily levied on imported 
petroleum products, was scheduled to be abol ished by 1 January 2005 but has now been 
prolonged for another year until 2006.  We consider this fee a violation of Article VIII of 
GATT 1994.  We would urge Ukraine to abolis h the fee immediately as previously foreseen. 
Answer:
 
Cabinet of Ministers Resolution No. 355 dated 18 Ma y 2005 eliminated the additional fee of € 0.01 kg 
imposed on petroleum products. 
- Fees and charges for services rendered 
Question 21 
Paragraph 95 ff:  We are grateful for the inform ation provided on the system for setting tariffs 
for transport of goods by rail.  From this , we understand that different railway tariffs are 
applied for transportation of imported and exported goods than those which apply for transportation within Ukraine.  In addition, preferential rates have been agreed with certain 
partners.  However, in the meantime, we were  pleased to receive most recent information 
suggesting that the process of harmonisation of ta riffs has started.  Could you please update the 
Working Party on these recent legislative changes.   Generally, we ask Ukraine to end any 
discrimination upon accession.  Please also clarif y the situation concerning transit in this 
respect.  
Answer:
 
On 1 April 2005 the Cabinet of Ministers of Ukra ine adopted the Order No.91-r "On Indexation of 
Tariffs for Transportation of Cargos by Railway Tr ansport and Related Servic es", which provides for 
an equal level of tariffs for internal railway tran sportation, and exports/imports, except for the tariffs 
on the transportation of the iron ore raw materials, cast iron, rolled ferrous metal, mineral fertilizers 
and oil products by the railway transport.  The ta riffs for these products will be unified by the end of 
the third quarter of the year 2005. 
Ukraine will harmonize the differential railway tariffs  for transport of goods by the date of accession. 
- Application of internal taxes to imports 
 - Excise taxes  
Question 22 
Paragraph 104:  We note that  paragraphs 104 and 113 have the same contents; we suggest to 
keep paragraph 113.  We will take position at  the appropriate moment on Ukraine's requests 
for transitional periods for excise tax and VAT  discrimination in the automobile sector until 
2007 and 2008 respectively.  
However, most recent information suggests that  in the context of amendments to the 2005 
Budget Law, the excise tax and VAT privileges have  been eliminated.  Please clarify whether the 
requested transitional periods are thus no longer necessary.  WT/ACC/UKR/127 
 Page 7 
 
 
 Answer:  
The excise and VAT privileges have been eliminated by the Law of Ukraine No. 2505 "On 
Amendment of the Law of Ukraine "On the State Budget of Ukraine for 2005 and Some Other Legal Acts" of 25 March 2005.  And thus the requested transitional periods are no longer necessary for VAT 
and excise privileges. 
- VAT
 
Question 23 
Paragraph 105:  Please see comment on paragra ph 11.  Is the value-added tax paid for an 
operative leasing agreement tax-deductible? 
Answer:  
The value-added tax paid for an operative leasing agreement is tax-deductible except for financial 
leasing. 
Question 24 
Please also clarify the situation concerning domestic energy products – are they also exempted 
from VAT? 
Answer:  
Domestic energy products are not exempted from VAT. 
Question 25 
Paragraph 106:  Please add "The Working Party t ook note of this commitment" at the end of 
the paragraph. 
Answer:  
Ukraine does not object to adding this sentence at the end of paragraph 106. 
Question 26 
Paragraph 108:  As mentioned in paragraph 183, Law No. 1766 of 15 June 2004 amended Law 
No. 168 On VAT by extending VAT privileges fo r imports of components for ship building 
enterprises for the period 1 January 2005 - 1 January 2012; VAT privileges for imports of 
components by aircraft plants have been renewed in 2005 (postponed by 2004 budget law) and 
will be valid till 1 January 2007, according to the current version of VAT law.  The report 
should reflect this.  
However, most recent information suggests that  in the context of amendments to the 2005 
Budget Law, these privileges may have been eliminated. Please provide an update of the situation. WT/ACC/UKR/127 
Page 8  
 
 Answer:
 
Ukraine confirms that VAT privileges for shipbuildi ng and aircraft enterprises have been eliminated 
by the Law of Ukraine No. 2505 "On Amendment of  the Law of Ukraine "On the State Budget of 
Ukraine for 2005 and Some Other Legal Acts" of 25 March 2005.  
- Quantitative import restrictions, including  prohibitions, quotas and licensing systems 
Question 27 
Paragraph 118:  We welcome the information that Ukraine will abolish import restrictions 
related to the age of vehicles imported into Uk raine upon accession.  Please confirm that this 
includes all existing restrictions, namely  related to buses, trucks and cars.  
Answer:  
The Draft Law, prepared by Ukraine, provides for abolishing a prohibition on imports of used buses 
and trucks older than five year s, and a restriction related to the age of buses and trucks.  
- Customs valuation 
Question 28 Paragraph 134:  What is the anticipated timing  for the draft Law to amend the Customs Code 
to ensure the integration of the Interpretative No tes?  When will the Customs Code be amended 
to stipulate mandatory publication of administrative and court decisions on valuation? 
Answer:
 
The interpretative notes will be adopted in a Cust oms Order. The first Draft of Customs Order on 
Interpretative Notes has been prepared.  It is exp ected to be finalized by the end of June 2005 and 
adopted during the second half of 2005.   
Draft amendments to the Customs Code will include  a provision stipulating mandatory publication of 
administrative and court decisions on valuation. The first Draft Amendments to the Customs Code has 
been prepared and is expected to be finalized by  the end of June 2005 a nd adopted during the second 
half of 2005.   
Question 29 
Once known, please include the date as of which d ecisions of court bodies, in particular in the 
customs valuation area, will be available on the internet. 
Answer:  
Decisions of court bodies, in particular in the cust oms valuation area, will be available on the internet 
as of the date of accession.  WT/ACC/UKR/127 
 Page 9 
 
 
 - Rules of origin 
Question 30 Question 79 of document WT/ACC/UKR/125:  The reply explains that the "sufficient 
processing criterion" is determined in general by the change of tariff heading method or the ad 
valorem proportion rule.  For "specific" product/co untries, and according to the reply provided, 
the sufficient processing criterion seems to be de termined through the change of tariff heading 
method, though the Resolution of the Cabinet of Ministers of Ukraine No. 2030 seems to establish technological process for determining th e criterion of the sufficient processing for 
"particular" goods.  Does this mean: 
- that the sufficient processing criterion can be determined in general alternatively 
through the change of tariff heading and the added value method? How is it decided 
when to apply one or the other method? 
- that for "specific" products/countries, if there are difficulties to determine the country 
of origin , the only method that will be applied is the change of tariff heading?  
- that for "particular" goods (which ones? ) the sufficient transformation will be 
determined through the technical processes method?  
Answer:
 
The Cabinet of Ministers of Ukraine has authority to  determine the criteria of sufficient processing for 
specific countries and goods on the basis of provisions set forth in Article 279 of the Customs Code.  
According to Article 279 of the Customs Code the criterion of sufficient processing is determined on 
the grounds of a change of the classification code of goods at the level of any of the first four digits, 
the rule of ad valorem share or the list of specific production or technological operations.   
If the Cabinet of Ministers does not establish such ru les for certain goods, then the rule, under which a 
product is considered undergone sufficient processing sh all apply, if in the result of its processing the 
classification code in the HS of description and coding of  goods at the level of any of the first digits is 
changed. Accordingly, it is the said rule that  is considered a general rule of origin. 
According to the Resolution of the Cabinet of Ministers of Ukraine No. 2030 of 27 December 2002 
the Cabinet of Ministers determined specifi c production and technological operations for 
identification of the criterion of goods processing.  The list includes products of the following tariff 
codes:  Group 25, Group 27, Codes 2818, 3301, 3403, 4001, 4017, 7103, 7111 and 8702-8704.   
Question 31 
Question 81 of document WT/ACC/UKR/125:  The rep ly provides the list of products subject to 
certificates of origin, but it is not clear wh at the situation concerning goods receiving MFN 
treatment is.  Is the certificate of origin com pulsory for goods to be granted MFN treatment?  
(Will a certificate of origin be systematically requested for EC products?) 
Answer:  
As indicated in the response, under Article 282 of the Customs Code, presentation of a certificate of 
origin is mandatory only in the following cases:   
- for the goods, originating in countries, to wh ich Ukraine applies preferential treatment in 
accordance with the Custom s Tariff of Ukraine; WT/ACC/UKR/127 
Page 10  
 
 - for the goods, import of which from respective countries is subject to regulation by 
quantitative limitations (quotas) or other meas ures of regulating foreign economic activities; 
- if so is provided by international agreements  of Ukraine, concluded in accordance with the 
procedure established by law, and also by Uk rainian legislation on environment and health 
protection; and 
- in cases where documents, that are submitted for customs clearance purposes, do not contain 
information concerning the origin of goods, or if  a customs authority has sufficient reasons to 
believe that the declared information rega rding the origin of goods is incorrect. 
Presentation of a certificate of origin therefore is not mandatory to obtain MFN treatment.  As also 
noted in the response, the declarant presenting goods for customs clearance will be required to declare 
the origin of the goods.  The basis for this declara tion can be a written self-certified declaration by the 
producer or exporter on the commercial i nvoice or other accompanying document.   
Question 32 
Concerning free zones, what are the criteria used by  Rules of Origin applied in free zones?  Are 
these criteria different from the ones used by general Rules of Origin? 
Answer:
 
The Law of Ukraine No. 2505 "On Amending the Law of Ukraine "On the State Budget of Ukraine 
for 2005 and Some Other Legal Acts" of 25 Marc h 2005 removes some articles from the laws on 
establishment and functioning of special economic zon es, which in particular determined the norms 
regarding the origin of goods produced within such  territories.  Thus, starting from the moment of 
adoption of the said Law of Ukraine the Rules of orig in unified for the entire territory of Ukraine shall 
apply. 
B. EXPORT REGULATIONS 
- Customs tariffs, fees and charges for services rendered, application of internal taxes to 
exports 
Question 33 
Paragraph 157 ff:  Export duties:  from the info rmation provided, it seems that Ukraine only 
intends to undertake very limited reductions of export duties even though it acknowledges in 
paragraph 159 that reductions are needed.  We urge Ukraine to consider further reductions and 
the eventual phase-out of all export duties.  
Answer:  
Draft Laws of Ukraine on reducing export duties have been submitted for consideration to the 
Verkhovna Rada of Ukraine. 
- Export restrictions 
Question 34 Paragraph 172:  We welcome the government's  commitment to lift the export ban on non-
ferrous scrap from the date of accession.  If subs tituted with an export duty, the level of this 
duty must not be prohibitive and form part of Ukraine's schedule to eventually phase-out all 
export duties.  WT/ACC/UKR/127 
 Page 11 
 
 
 Answer:  
Ukraine took note of this remark.  The draft Law "On Export Duty on Wastes and Scrap of Non-
Ferrous Metals and Steel Alloys" regarding the e limination of prohibition of exports of scrap non-
ferrous metals has been submitted for consider ation to the Verkhovna Rada of Ukraine. 
C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS 
- Industrial policy, including subsidies 
Question 35 Paragraph 183:  Please provide updated inform ation on the support for the shipbuilding 
industry, following most recent legislative developments. 
Answer:
 
All VAT, customs duties, and profit tax exemptions in  the shipbuilding industry have been eliminated 
by the Law of Ukraine No. 2505 "On Amendment of  the Law of Ukraine "On the State Budget of 
Ukraine for 2005 and Some Other Le gal Acts" of 25 March 2005.   
Question 36 
Paragraph 186:  Please report on any new deve lopments regarding the possible revision of the 
Law on State Budget 2005 with a view to the suspension of VAT privileges for automotive, 
shipbuilding and aircraft construction industries. 
Answer:  
All VAT exemptions for automobile, shipbuilding,  airspace, and aircraft industries have been 
eliminated by the Law of Ukraine No. 2505 "On Am endment of the Law of Ukraine "On the State 
Budget of Ukraine for 2005 and Some Other Legal Acts" of 25 March 2005.  
Question 37 Paragraph 194:  see comment on paragraph 21. Paragraph 196:  We take note of Ukraine's inte ntion to request a transitional period until 2008 
in relation to its discriminatory measures in the field of automobiles under the Agreement on 
Subsidies and Countervailing Measures.  We will take a position at the appropriate moment a 
priori, however, granting any such period would be difficult. 
However, in the meantime, it appears that most recent amendments to the 2005 Budget Law 
may have eliminated these privileges, and conse quently, a transition period would no longer be 
necessary.  Please clarify. 
Answer:
  
Please see paragraph 186.  A transition period would not be necessary.  WT/ACC/UKR/127 
Page 12  
 
 - Technical barriers to trade, standards and certification 
Question 38 Paragraph 200:  Could you provide an updated list  of products currently subject to mandatory 
certification?  What is the timetable for reducing the list of low-risk goods subject to certification from now on (the information provided until covers the period until the end of 
2004)? 
Answer:
 
The updated List of products subject to mandatory certification is approved by the Order of State 
Committee for Technical Regulation and Cons umer Policy No. 28 of 1 February 2005 and 
accordingly 25 categories/subcategories of low-risk products had been removed from the list.  Please 
see new list attached below. 
Question 39 
Paragraph 204:  What is the maximum time that the certification process may take?  Given that 
no list of fees exists, is it possible to get in ad vance information on the cost of the certification? 
Answer:  
The time of certification process depends on the type of products, testing and certification schemes.  It 
may take from three days to one month. 
The calculation of cost for certification is conducte d pursuant the Rules on Determination of the Cost 
of Works to certify Products and Services approve d by the Order of State Committee for Technical 
Regulation and Consumer Policy No. 100 of 10 Marc h 1999.  According to this Order, the fee for 
obtaining certificate of conformity is the same  for both domestic and imported goods and it is 
according to the following formula:  0.1 х Дmin х N; where Дmin  is non-taxable minimum income of 
citizens and N is number of copies of the certificate of conformity. The cost of blank forms is paid 
additionally. 
Additional Certification-Rela ted Fees for Imported Goods  
Description of work Unit of Measurement Norm of payment 
Preparing references (conclusions) for customs 
control bodies  Hour 4 Дmin  
Translation and confirmation of authenticity of 
translation of the documents  Printed sheet 8 Дmin  
 
Question 40 
Paragraph 207:  Please provide an update on recent developments – when will the TBT enquiry 
point be operational? 
Answer:  
To ensure full compliance with the notificatio n requirements of the TBT Agreement and the 
provisions of the Code of good practice for the Prepar ation, Adoption and Appli cation of Standards, a 
Draft Resolution on establishment of TBT enquiry and notification point has been approved by the cabinet of Ministers.  The TBT enquiry and notif ication point will be operational from the date of 
accession.  WT/ACC/UKR/127 
 Page 13 
 
 
 Question 41 
Paragraph 208:  We would be grateful to receive the text of the draft Law On Standards, 
Technical Regulations and Conformity Asses sment Procedures as soon as possible. 
Answer:  
The finalized Draft Law on Standards, Technical Re gulations and Conformity Assessment Procedures 
has been submitted to Parliament for consideration. 
Question 42 
Paragraph 210:  Generally, we would expect Ukraine not to apply any national provisions upon 
accession that run counter to the TBT Agreement.  We take note of Ukraine's intention to 
implement the review of existing technical reg ulations over a yet undefined period.  Please 
submit an Action Plan to achieve full complian ce as soon as possible.  While granting any 
transitional period would a priori  be difficult, we will take a position on Ukraine's request once 
all necessary material has been received and reviewed. 
Answer:  
Ukraine will not apply any national provisions upon accession that run counter to the TBT Agreement 
mandatory requirements.  State Committee for Tec hnical Regulation and Consumer Policy prepared 
Action Plan to achieve full harmonization of st andards and technical regulations during period 
2005-2011 (document WT/ACC/UKR/129). 
Question 43 
In the meantime, we would also appreciate receivi ng the texts of any technical regulations that 
have already been adapted for review. 
Answer:  
The texts of technical regulations that have been  adapted are based on EEC/EC directives as indicated 
in the attached action plan.  
- Sanitary and phytosanitary measures 
Question 44 
Paragraph 214:  The costs for border inspection are likely to increase in the future.  How is it 
ensured that only necessary inspections are made and that  the costs would not increase 
excessively? 
Answer:  
Current SPS-related legislation requires inspection,  sampling and testing of consignments of food 
products, live animals, animal products, live plants, pl ant products, or other articles that may carry or 
transmit animal diseases or hazardous organisms (p ests).  In each of the new SPS-related laws, two 
levels of border contro l—standard and extended— are applied to SPS-related consignments presented 
for import into Ukraine.  This provision in th e new laws should significantly reduce the number of 
inspections that include sampling and testing of go ods in a consignment.  Standard border control 
consists of verification of documentation accompan ying consignments and visual inspection of the WT/ACC/UKR/127 
Page 14  
 
 goods in the consignment.  If all documentation is in order and ther e are no visual indications of a 
health risk from the goods, the consignment will be  cleared for entry without sampling and testing 
when the risk presented by the consignment is low.  Assessment of the risk associated with a specific 
consignment is based on any pre-e xport and/or post-entry requirement s for consignments of animals 
and plants and their products and whether or not pr ior consignments of like goods from the country of 
origin and/or particular facility of origin contai ned goods that did not comply with relevant sanitary, 
veterinary-sanitary or phytosanitary measures.  
With regard to the cost of inspection, in each of the new laws dealing with food safety, plant health, 
and animal health, the following will apply: 
"All fees charged in connection with any administ rative procedures, laboratory analyses, expertise, 
control or other procedure required in accordance w ith this Law shall not exceed actual cost of the 
service rendered."  
Question 45 
Paragraph 216:  What is the timetable for the ad option of the various draft laws related to SPS 
issues? 
Answer:
 
Draft laws have been submitted to Parliament and are to be adopted before end of 2005. 
Question 46 
Paragraph 220:  We welcome Ukraine's comm itment to establish a single SPS Enquiry and 
Notification Point prior to the date of its accession  to the WTO.  We would be interested in more 
detailed information on the preparations and the estimated timing. 
Answer:  
Draft Resolution establishing SPS Enquiry and Notifi cation Point has been approved by the Cabinet 
of Ministers. The SPS Enquiry and Notification poi nt will be operational from the date of accession. 
Question 47 
Paragraph 221:  Generally, we would expect Ukraine not to apply any national provisions upon 
accession that run counter to the SPS Agreement.  Ukraine states that it will seek transitional 
arrangements to achieve full compliance with th e SPS Agreement.  Please submit an Action 
Plan to achieve full compliance as soon as possible.  While granting any transitional period would a priori  be difficult, we will take a position  on Ukraine's request once all necessary 
material has been received and reviewed. 
Answer:
 
Ukraine will fully implement the SPS Agre ement upon accession provided adequate technical 
assistance from WTO Members to modernize testing la boratories, border inspection, control methods, 
and sampling procedures and to train relevant  personnel.  The SPS Harmonization Program is 
available in document WT/ACC/UKR/128.  WT/ACC/UKR/127 
 Page 15 
 
 
 Question 48 
Document WT/ACC/UKR/124 – Commitment 6, Anim al Health Legislation:  The document 
says that all veterinary-sanitary measures shall be  based on international standards, guidelines, 
and recommendations of the relevant international organisations.  What if there is no international standard available? 
Answer:
 
If no international standard, guideline or recommendati on is available, veterinary-sanitary measures 
will be prepared following a risk analysis us ing the methodology developed by the relevant 
international organisations (specifically the World Animal Health Organisation). If scientific evidence 
needed for risk analysis is insufficient, veterina ry-sanitary measures will be prepared on the basis of 
available information obtained from relevant international organisati ons (OIE), or the veterinary-
sanitary measures employed by WTO Members. 
Question 49 
Document WT/ACC/UKR/124 – Commitment 7, Animal  Health Legislation:  It is said that 
relevant measures in another country are cons idered equivalent to those of Ukraine, and 
consequently accepted, if the other country shows in an objective manner that its measures 
achieve the same or higher level of protection of animal health and life as is required by Ukraine.  What is meant by the words "in an objective manner"?  What is actually required? 
Answer:
 
The new animal health legislation requires that  all veterinary-sanitary measures be based on 
international standards, guidelines and recommendations  of relevant international organizations.  The 
Terrestrial Animal Health Code published annually by the OIE contains guidelines with regard to 
reaching a judgement of equivalen ce of veterinary-sanitary measures, which will provide the basis for 
establishing the criteria and procedure for considera tion and acceptance or rejection of equivalence. 
Question 50 
Document WT/ACC/UKR/124 – Commitment 11, Animal  Health Legislation:  It is mentioned 
that all fees charged in connection with any ad ministrative procedure laboratory analysis, 
expertise, control or other procedure required sha ll be equal to the actual cost of the service 
rendered plus a reasonable rate of return.  Wh at is meant here by the word "reasonable"? 
Answer:  
Please note the "reasonable rate of return" is to  be eliminated from all SPS-related drafts. 
Question 51 
Document WT/ACC/UKR/124 - Plant Health Legislat ion and Food Safety Legislation:  Similar 
comments as those made on commitments 7 and 11 concerning animal health legislation (above) 
apply to this legislation as well. 
Answer:  
The new plant health legislation requires that a ll phytosanitary measures be based on international 
standards, guidelines and recommendations of releva nt international organizations. In the case of WT/ACC/UKR/127 
Page 16  
 
 plants, the relevant international organizations ar e the IPPC and the regional organizations working 
within the framework of the IPPC. The IPPC h as prepared a draft International Standard for 
Phytosanitary Measures (ISPM) containing guidelines on the concept of equivalence of phytosanitary 
measures and its application in international trad e.  Upon finalization of the draft, these guidelines 
will be used as the basis for establishing the crite ria and procedure for c onsideration and acceptance 
or rejection of the equivalence of foreign country phytosanitary measures. 
- Trade-related investment measures 
Question 52 Paragraph 226:  We will take a position on Ukraine's request for a transitional period for 
TRIMs at the appropriate moment; a priori , however, granting any such period would be 
difficult. 
However, in the meantime, it appears that most recent amendments to the 2005 Budget Law 
may have eliminated these privileges, and conse quently, a transition period would no longer be 
necessary.  Please clarify.  Can Ukraine confir m that upon accession, no operator will benefit 
from the privileges available under the previous conditions? 
Answer:
 
As far as the Law of Ukraine No. 2505 "On Amendm ent of the Law of Ukraine "On the State Budget 
of Ukraine for 2005 and Some Other Legal Acts" of 25 March 2005 has eliminated the 
abovementioned privileges a transition period would no longer be necessary.  
- State-trading entities 
Question 53 
Paragraph 228:  How will state trading entities be treated in the future?  Answer:
 
To prevent the Working Party members from misunderstanding as to the use of the terms "state 
enterprises" and "state trading entities" the in formation in the draft report will be updated. 
For State Trading Entities, Ukraine will abide by the Understanding on the Interpretation of Article 
XVII of the GATT 1994 
- Free zones, special economic areas 
Question 54 Paragraph 241:  When will the legislation to  remove the WTO inconsistencies be adopted? 
Recent information suggests that amendments to  the 2005 Budget Law have removed privileges 
granted to FEZs?  We would appreciate receiving clarification and the relevant legislation as 
soon as possible. 
Answer:
 
The Law of Ukraine No. 2505 "On Amendment of the Law of Ukraine "On the State Budget of 
Ukraine for 2005 and Some Other Legal Acts" of  25 March 2005 cancels the privileges for business  WT/ACC/UKR/127 
 Page 17 
 
 
 entities registered in special econo mic zones, territories of priority development and technological 
parks without changing the principles of the effe ctive taxation mechanism, and without increasing a 
tax burden on goods manufacturers.  In particul ar, the Law cancels the exemption from land tax, 
corporate income tax, import dut y and value-added tax on imports. 
Question 55 
Article 9 of the 2005 Budget Law imposes a moratori um on the creation of new FEZs as well as 
on the introduction of special investment regime s in new territories and on the creation of new 
technological parks.  The same provision imposes a moratorium on the approval of new 
investment projects in FEZs and on territories  with special investment regimes.  The report 
should be modified accordingly. 
Answer:  
Ukraine does not object to reflecti ng such information in the report. 
Question 56 
Paragraph 243:  Please add "upon accession" after "in compliance with WTO provisions". 
Answer:  
Ukraine does not object to reflecti ng such information in the report. 
- Transit  
Question 57 Paragraph 256:  When will the text of Resolution of the Cabinet of Ministers No. 938 of 
12 August 1996 (with changes and amendments) be provided to the Working Party? 
Answer:
 
An English version of Cabinet of Ministers Resolution No. 938 date d 12 August 1996 will be 
submitted to the WTO Secretariat. 
Question 58 
Paragraph 258:  Please reformulate the sentence "He noted… to impose a 'convenient route'". 
We do not agree that a government always knows what is the most convenient route for the 
economic operator in a specific case.  It appears that the economic operator is better placed to 
decide what is most convenient. 
Answer:  
Ukraine will take note of this proposal, but would like to mention that this paragraph deals with 
groups of excisable goods, for which specially equipped check points must be created to prevent taxation abuse, in particular, it deals with ensu ring delivery of excisable goods to the customs of 
destination, which, in turn, prevents smuggling. WT/ACC/UKR/127 
Page 18  
 
 - Agricultural policies 
 (c) Internal policies Question 59 Paragraph 265:  There is no reference to the fact  that the purchasing and selling of agricultural 
land, foreseen in the Law of 2001 to be possible in 2005, was subject to a moratorium until 2007. 
Are any changes to this situation planned? 
Answer:
 
No changes to this situation are planned. 
- Textiles regime 
Question 60 
Paragraph 279:  Table 18(b) should be update d to take into account with regard to recent 
developments (export licenses no longer required for certain categories). 
Answer:  
Pursuant to Cabinet of Ministers Resolution No . 1774 of 31 December 2004 "About bringing of 
changes to the Resolution of Cabinet of Minist ers of Ukraine No. 1722 of 23 December 2004" ("On 
Approval of the List of Goods Export and Import of which is Subject to Licensing and Falling under 
Quotas in 2005"), export licenses are no longer issued for textile products falling within categories 2, 
2(a), 4, 5, 6, 7, 8, 12, 13, 15, 26/27, 29, 83, and 117 exported to the EU.  Thus, Table 18b is no longer valid and should be totally eliminated from the report. 
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME 
- ENFORCEMENT 
Question 61 
We would be grateful for an update of Ukra ine's efforts to fight IPR infringement and 
audio/visual and software piracy. 
Answer:
 
Note that the Draft law No. 7032 on Optical Di sks passed the first reading in the Parliament on 
5 April 2005. 
In 2004, there were 218 legal cases (comparing w ith 168 in the previous year) related to the 
enforcement of intellectual property rights - 150 cases in economic courts and 68 in local courts.  
Twenty-two decisions were taken in the courts of the first instance, 27 decisions – appeal instance, 
17 – cassation instance, 29 cases were brought to the High Economic Court and 17 final decisions were taken.  
Most of the cases concern invalidation of certificates for trademarks and services mark on the basis of 
inconsistency with of the registered marks to the requirements for granting legal protection. For  WT/ACC/UKR/127 
 Page 19 
 
 
 unlicensed use of the authors' rights, non-paymen t of remuneration 8 claims were brought for the 
amount of UAH 586,700. 
In 2004 according to the State Department of In tellectual Property Instruction No. 43, 269,706 
hologram marks were issues to importers, exporte rs and reproducers of audiovisual works and 
phonograms, that fact proves the gradual increase of  the share of licensed audio and video production 
in market of Ukraine (5 million more than during the previous year). 
In 2004 state inspectors together with Ministry of Interior Affairs, State Tax Authority and Secret 
Service of Ukraine held 659 joint inspections of the subjects of economic activity related to the 
exploitation of intellectual property rights.  On th e basis of inspections were filled 397 administrative 
protocols, counterfeit products for amount of more than UAH 46 million were confiscated, 
58 criminal cases were initiated for infringe ment of copyright and related rights.  
VI. POLICIES AFFECTING TRADE IN SERVICES 
Question 62 Paragraph 336:  We received information that the draft Law allowing foreign banks to set up 
branches in Ukraine has been re-submitted to Pa rliament in early April 2005 – could you please 
confirm this? 
Answer:
 
Ukraine confirms the re-submission of this draft to Parliament on 1 April 2005 (Draft No. 7274). 
Question 63 
As far as we know, the Law on Banks and Banki ng was last amended on 22 June 2004 (on bank 
liquidation procedures), and not on 11 November 2003 as stated in the paragraph. 
Answer:  
Correct.  
Question 64 
Paragraph 338:  Please provide an update on the situation concerning the draft Laws on 
Auditing and On Bar. 
Answer:  
Drafts have been submitted to Parliament: - On Auditing: 3 March 2005 (Draft No. 7149); and 
- On Bar: 4 February 2005 (Draft No. 7051). 
Drafts are being considered by re levant committees at Parliament. 
 
__________